Why von der Leyen’s deregulation campaign is causing confusion in Brussels

Good morning. Scoops to start: British Prime Minister Sir Keir Starmer will attend an informal summit of EU leaders focused on European security in February, officials told the Financial Times; while European Central Bank President Christine Lagarde said in an interview that European leaders should cooperate, not compete, with US President-elect Donald Trump over tariffs.

Today, our climate correspondent tries to determine where Ursula von der Leyen’s “omnibus” regulations are going. And our correspondent in Dublin tells us about an Irish electoral campaign which is being played out until the end.

All on board

The President of the European Commission, Ursula von der Leyen, recently showed in her speeches a predilection for a certain type of transport: the omnibus, writing Alice Hancock.

Background: A key part of von der Leyen’s agenda for his second five-year term is simplifying rules and reducing reporting requirements for companies. This is the result, in large part, of the sustainable development program she put in place during her previous mandate.

The move follows companies suspending investments as they struggle to deal with red tape, on top of high energy prices and competition from Chinese rivals.

The problem is that no one else on the committee seems to know what she’s talking about.

Von der Leyen first unveiled his proposed “omnibus” regulations that would allow trainers and horses to overcome the administrative burden at a press conference in Budapest in October, saying that in “one single proposal”, you could reduce the bureaucracy of many previously agreed laws. .

“Measure us by our words, we will come for example with a so-called omnibus,” she told reporters, adding that this would cut the heavy paperwork “in one step”.

The legislation she is considering includes key elements of the EU’s sustainable finance policy, including new rules requiring companies to take action on human rights and environmental violations in their chains procurement, and the bloc’s historic taxonomy, designed to direct funding towards green investments.

The omnibus returned yesterday in a speech to the European Parliament, with von der Leyen telling EU lawmakers it would be “one of the first steps of the new mandate”.

The mystery lies in the size, shape and color of this omnibus. Senior commission officials expressed surprise at the driver’s repeated omnibus references. One suggested that the idea of ​​new legislation to reduce legislation was more about form than substance.

“It’s an evolving story, it seems,” another EU official said.

A commission spokesperson said the commission would “come forward with significant measures to reduce charges.”

Investors, however, are not happy with the apparent direction of travel.

Aleksandra Palinska, executive director of Eurosif, the sustainable finance association, said that reducing reporting requirements even before they had “been properly implemented…”. . . will be useful neither to investors, who need data, nor to reporting companies that have already started preparing for compliance.”

Traffic jams ahead.

Chart of the day: Watch out for the gap

European banks need mergers and acquisitions to keep pace with their American rivals, writes Lex.

Home straight

Ireland’s three main parties head into tomorrow’s general election in a near stalemate, writing Jude Webber.

Context: The conservative Fine Gael party and the centrist Fianna Fáil party have led a coalition with the Green party since 2020. Fine Gael’s desired outcome is to return to anchor a new coalition, with independents or a smaller party.

But Fine Gael has lost strength recently, as three polls have seen it fall behind while Sinn Féin, the pro-Irish Unity Party that makes up Ireland’s main opposition, has gained ground.

A Red C survey for the Business Post published last night, Fianna Fáil led with 21 percent, Sinn Féin and Fine Gael each with 20 percent.

Sinn Féin has no strong allies and the other two major parties have repeatedly refused to form a coalition with the party. But analysts say much will depend on the numbers when the votes take place.

The winner of the election will steer the country through possible transatlantic trade turmoil. Among the biggest issues is US President-elect Donald Trump’s threat to cut corporate taxes to match Ireland’s 15 percent and impose tariffs on foreign-made goods in the aim of attracting national companies.

Most of Ireland’s huge budget surplus – expected to reach €24 billion this year – comes from US companies based in the country, making it vulnerable to any policy changes. In addition to global technology companies, Ireland is home to manufacturing operations for pharmaceutical company Pfizer and chipmaker Intel.

The rising cost of living and lack of affordable housing were also key themes in the election, while immigration played a less crucial role than expected.

In a vote marked by strong support for independent candidates and a large number of voters still undecided, all eyes will be on tomorrow evening’s exit from the polls.

What to watch today

1. European industry ministers meet.

2. Czech Foreign Minister Jan Lipavský receives his Israeli counterpart Gideon Sa’ar in Prague.

Now read them